Know your costs, maintain your standards JN Bank advises agribusinesses

KINGSTON, Jamaica — Agribusiness operators, including agro-processors and manufacturers, are being encouraged to pay close attention to their production costs, product quality and market demand as they position their businesses for long-term growth in the aftermath of Hurricane Melissa. Alecia Clarke, business solutions manager at JN Bank who met with a range of business operators and farmers at the recently concluded Denbigh Agricultural, Industrial and Food Show in May Pen, Clarendon, said although access to financing is important, business owners must also take deliberate steps to strengthen their operations and profitability. “Know your true cost of production and protect your margins,” Clarke advised farmers and business operators attending the English-speaking Caribbean’s largest agricultural show.

“On the shelf, your product may appear to be profitable, but where money tends to get lost is when one begins to take account of the costs for processing and overheads, so track your input costs very carefully to ensure each product is earning what it should be earning.” She recommended that farmers and agribusiness operators should carefully monitor expenses such as labour, packaging, energy, transportation, storage, compliance and distribution to ensure accurate understanding of their profitability. Clarke also underscored the importance of maintaining consistent product quality, particularly for businesses seeking to expand into larger markets. “Growth depends on being able to meet buyer expectations every time,” she said.

“That means you have to invest in standards, proper labelling, reliable packaging, shelf-life testing and quality control so that your buyers won’t ever doubt the quality you’re providing.” Clarke underscored that establishing a reputation for consistency can help businesses strengthen customer confidence and improve their competitiveness in local and export markets. She further encouraged agro-processors and manufacturers to align production with confirmed demand to reduce business risks. “Agro-processors and manufacturers often need cash upfront for inputs, such as raw materials and packaging,” she explained.

“A good way to prepare yourself is by pursuing purchase orders, distribution agreements, or buyer commitments alongside financing options, so that your production is tied to real demand rather than speculation.” Clarke said secu…